RBF transfers $146 million profit to govt

The Reserve Bank of Fiji has transferred a record $146 million in profit to the Fijian Government for the 2024–2025 financial year.

RBF Governor Ariff Ali says since the government is the Bank’s sole shareholder, all profits after allocations to reserves have been transferred — bringing the total given to government to $380 million over the past three years, and $463 million over the last five.

He says Fiji’s economic indicators remain positive, despite global challenges.

Acting Prime Minister and Minister for Finance, Professor Biman Prasad has welcomed the profit transfer, saying it reflects confidence in the economy and supports government efforts to reduce the cost of living and maintain stability.

He acknowledged that although the central bank's objective is not necessarily to make a profit, he is very pleased that the Bank, while meeting its monetary policy objectives, has also been able to provide this significant return to the government.

Professor Prasad says the increase in profit was driven by higher foreign reserves and high interest rates in Fiji’s trading partners.

He adds that, as of yesterday, foreign reserves remained strong at $3.89 billion.

Professor Prasad also says that contrary to some narratives from those who may not read the official statistics, inflation has been in negative territory for seven consecutive months.

He adds that Fiji remains on track for around 3 percent GDP growth this year and praised the Reserve Bank for playing a vital role in maintaining economic confidence and stability.

Professor Prasad says the economy has made a strong recovery post-COVID, and that growth has continued particularly in comparison to partner countries such as New Zealand.

He says the Macroeconomic Committee will review growth figures and forecasts in the coming months.

He adds that while global headwinds persist, the government remains optimistic that 2025 will see projected growth or possibly even slightly higher, depending on a range of variables, including investment trends over the next few months.